Bitcoin, Ethereum, and Litecoin have yet for finding their bottom. All three seem to be consolidating in preparation for a breakout in one direction or the other. The price action of Bitcoin seems to be where all the attention is currently focused.
Bitcoin continues to hover near the $10,000 price level where it has encountered support.
On January 16th, Bitcoin made a sharp drop from $13,617, to a low of $9760.00 breaking below the $10,000 price level for the first time since it hit its all-time high near $20,000 in mid-December. When Bitcoin broke through the $10,000 price mark last November 29, 2017, on its way up, the financial news media went absolutely crazy over the cryptocurrency, bringing a great deal of attention to it, and in many ways creating an “irrational exuberance” among newcomers to the market, leading to the significant rise in demand, and the rapid price increase.
As can be seen in Chart #1 below, it took Bitcoin less than three weeks to go from $10,000 to its all-time high near $20,000. Who’s to say that is can’t happen again.
However, the retracement to the $10,000 level once again has the financial media in a “Tizzy,” this time for a doom-and-gloom scenario. And once again, the news is drive prices.
Chart#1 Bitcoin Daily
The Bitcoin daily chart above is showing more downward price tendency with a descending triangle pattern forming.
However, the $10,000 level is definitely a key support level for Bitcoin and the entire cryptocurrency market.
Anyone that is involved in the cryptocurrency market is watching bitcoin’s price action to see which way price breaks. A significant move in either direction will cause the “herd to stampede” and the price move will be greatly amplified.
The savvy trader will pay close attention the volume patterns in the intraday price charts. They will reveal early on which way price will break.
Ethereum is the only one of the three cryptocurrencies I this article showing any indication of breaking to the upside.
As can be seen in Chart #2 below, the Euthereum daily chart is showing an inverted head-and-shoulder price pattern forming. This pattern is typically an indication of a price reversal to the upside.
Ethereum’s volume is below its normal average. When Bitcoin makes a move away from the $10,000 price level, in all likelihood, Ethereum will move with it.
If the price move is to the upside, Ethereum is primed to make new all-time highs.
Litecoin’s price action is mirroring Bitcoins.
Chart #3 below shows how Litecoin is trading at the apex of a descending triangle pattern for which it has broken slightly below the lower support level line.
Volume for Litecoin is very light, and the price seems to be reacting to moves by Bitcoin.
Chart#3 Litecoin Daily
In the cryptocurrency market where fundamentals are virtually non-existent, news and the bell-weather assets drive the market. From a technical analysis perspective, entire cryptocurrency is currently lumbering around with light volume, and no momentum, waiting for something to happen. The next few days may bring about some price movement that may spark some volatility.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of coinmarketcap.com
Blockchain technology outshines Bitcoin and Gold during global pandemic
As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.
However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world.
Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.
What is blockchain technology?
Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see.
Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).
Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…